MIRA INFORM REPORT

Report Date :

12.08.2011

IDENTIFICATION DETAILS

Name :	BORSODCHEM MCHZ, S.R.O.
Formerly Known As :	DARKIS, s.r.o
Registered Office :	Chemická 2039/1 , 709 03 Ostrava-Mariánské Hory
Country :	Czech Republic
Financials (as on) :	31.12.2010
Date of Incorporation :	15.12.1999
Com. Reg. No.:	C/9376
Legal Form :	Private Limited Company
Line of Business :	Manufacturer of industrial gases

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	CZK 34 000 000,- EUR 1 277 380,-
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Czech Republic	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

Company name & address

BorsodChem MCHZ, s.r.o.
Chemická 2039/1 
709 03 Ostrava-Mariánské Hory 
Telephone: 00420/ 596 641 111
Telefax: 00420/ 596 626 258
e-mail: posta@bc-mchz.cz
Web: www.bc-mchz.cz

COMPANY summary

Company development

Constant company development

Order situation	Satisfactory order situation
Terms of payment	as far as known, prompt

Business connection	Business connections appear permissible
Credit limit		CZK 34 000 000,- EUR 1 277 380,-

Legal form

Private limited company

Foundation	Private limited company  15/12/1999 - Private limited company
Comp. Register	15/12/1999, Krajský soud České Budějovice, RegNr.: C/9376 13/07/2000, Krajský soud v Ostravě, RegNr.: C/22763 Statistical number: 26019388 Tax number: CZ26019388

Share Capital	15/12/1999	CZK	100 000,-
	04/05/2000	CZK	865 100 000,-

Shareholders	BorsodChem Zrt. 3702 Kazincbarcika, P.O.B.208, Bólyai tér 1, Hungary		CZK	865 100 000,-
Management		Ing. Přemysl Antecký, MBA (15.01.1959) Hlavní 45, 742 05 Vřesina  Executive Manager sole power of attorney

	Mgr. Miroslava Jeřábková (15.10.1966) Horymírova 10/2973, 700 30 Ostrava, Zábřeh  Executive Manager sole power of attorney
Supervisory Board	Jerzy Wiertelorz (19.02.1959) Akajcowa 24, 47220 Kedzierzyn-Kózle, Poland chairman

Béla Varga (20.06.1961)
3702 Kazincbarcika, Herbolyai út. 33, Hungary

Csaba Raisz (10.06.1978)
3529 Miskolc, Semmelweis Ignác utca 22, Hungary

General Data	Manufacture and sale of products of organic and inorganic chemistry,
	of special amines, aniline, of cyclohexylamines.

Main activity: Manufacture of industrial gases
	Former name(s) DARKIS, s.r.o. Beginning of validity: 15.12.1999 End of validity: 02.02.2000

BorsodChem - Moravské chemické závody, Ostrava, s.r.o.
Beginning of validity: 02.02.2000
End of validity: 03.08.2000

Trade name(s)
BorsodChem MCHZ, s.r.o.
Beginning of validity: 03.08.2000

Export: Hungary Slovakia	97%
Import: Hungary Slovakia Poland

Address:
Chemická 2039/1, 709 03 Ostrava-Mariánské Hory 
Beginning of validity: 12.10.2002
telephone:
00420/ 596 641 111
telefax:
00420/ 596 626 258
e-mail:
posta@bc-mchz.cz
Web:
www.bc-mchz.cz

Hradčanská 495, 38701 Volyně 
Beginning of validity: 15.12.1999
End of validity: 31.05.2000

Chemická 1, Ostrava - Mariánské Hory 
Beginning of validity: 31.05.2000
End of validity: 12.10.2002

Staff	2007	516 employees
	2008	407 employees

2009	375 employees
2010	360 employees

		2011	360 employees
Annual Sales	2005			actual sales	CZK	4 498 716 000,-

2006	actual sales	CZK	5 199 531 000,-
2007	actual sales	CZK	5 343 806 000,-

2008	actual sales	CZK	4 273 005 000,-
2009	actual sales	CZK	2 753 506 000,-

	2010		actual sales	CZK	4 563 044 000,-
Property		Property of the company: Business premises  (verified in the real estate registry) CZ-709 03 Ostrava, Chemická 2039

Balance sheets	The enclosed balance of 2010 from business register, -. (31.12.2010 - 1 CZK) The enclosed balance of 2009 from business register, it is authenticated by the auditor. (31.12.2009 - 1 CZK) The enclosed balance of 2008. (31.12.2008 - 1 CZK) The enclosed balance of 2007. (31.12.2007 - 1 CZK)
	The enclosed profit/loss account of 2010 from business register, -. (31.12.2010 - 1 CZK) The enclosed profit/loss account of 2009 from business register, it is authenticated by the auditor. (31.12.2009 - 1 CZK) The enclosed profit/loss account of 2008. (31.12.2008 - 1 CZK) The enclosed profit/loss account of 2007. (31.12.2007 - 1 CZK)

Remarks	The company is a holder of ISO 9001 and ISO 14001 certificates. All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection and others) are currently monitored.
	Business management:

Ing. Přemysl Antecký, MBA – general director - 00420/ 596 642 000

Ing. Radek Šajtar – financial manager - 00420/ 596 643 000

Ing. Václav Novák, MBA – business director, phone: 00420/ 596 642 700

On May 31, 2003 Agreement on deposit of a part of enterprise has been

concluded and, at the same time, it has come into force – it was

concluded between the company BorsodChem MCHZ, s.r.o. and the company

DUKOL Ostrava, s.r.o. By means of this agreement and by handing over

of a part of enterprise, non-monetary deposit has been paid up for

the purpose of increasing to share capital in the company DUKOL

Ostrava, s.r.o. from the present amount of CZK 200.000,- by the

amount of CZK 49.800.000,- to new value of the share capital

amounting to CZK 50.000.000,-.

On 29.10.2007, Agreement on sale of a part of enterprise has been

concluded between the company BorsodChem MCHZ, s.r.o. as the sales

company and the company MAINTEC s.r.o., IČ 26725495, as purchaser

company. On November 1, it has entered into effect. .

Subject to this agreement was transfer of a part of enterprise

defined as a part of enterprise – independent organization units

"elektro” and “MaR", serving to secure all the activity connected

with complex maintenance of electric equipment and maintenance of

equipment for measuring and regulation and it has come into effect on

November 1, 2007.

On February 12, 2009 Agreement on sale of a part of enterprise was

concluded between the company Borsod Chem MCHZ, s.r.o. as the sales

company and the company Messer Technogas s.r.o., Praha 4, IČ 40764788

as the purchaser company; at the same time, this agreement has come

into force. Subject to this agreement was transfer of a part of

enterprise defined as a part of enterprise – independent organization

unit “Manufacture of nitrous oxide” defined in the Art. II. Of the

Agreement on sale of a part of enterprise.

As of January 31, 2011, Chinese chemical company Wanhua Industrial

Group has assumed 100% of shares in mother company BorsodChem Zrt.

Contact:

ing. Orgoníková – chief accountant, phone: 00420/ 596 643 100

Bankers

Raiffeisenbank, a. s.

financial

	Balance	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
r1	TOTAL ASSETS	3 286 917 000	2 665 185 000	2 811 875 000	2 942 140 000
r2	Receivables for subscriptions			0	0
r3	Fixed assets	2 221 120 000	2 128 700 000	2 034 320 000	1 897 082 000
r4	Intangible fixed assets	4 907 000	2 993 000	3 312 000	2 556 000
r5	Incorporation expenses			0	0
r6	Research and development			0	0
r7	Software	4 842 000	2 993 000	3 312 000	2 556 000
r8	Valuable rights			0	0
r9	Goodwill			0	0
r10	Other intangible fixed assets	65 000		0	0
r11	Intangible fixed assets under construction			0	0
r12	Advance payments for intangible fixed assets			0	0
r13	Tangible fixed assets	2 216 213 000	2 125 707 000	2 031 008 000	1 894 526 000
r14	Lands	98 722 000	98 722 000	98 722 000	101 596 000
r15	Constructions	1 002 746 000	956 953 000	910 409 000	871 171 000
r16	Equipment	1 187 010 000	1 097 611 000	1 049 506 000	899 805 000
r17	Perennial corps			0	0
r18	Breeding and draught animals			0	0
r19	Other tangible fixed assets	488 000	488 000	488 000	488 000
r20	Tangible fixed assets under construction	1 806 000	3 817 000	26 108 000	53 959 000
r21	Advance payments for tangible fixed assets		32 508 000	0	11 564 000
r22	Adjustment to acquired assets	-74 559 000	-64 392 000	-54 225 000	-44 057 000
r23	Long-term financial assets			0	0
r24	Shares in controlled and managed organizations			0	0
r25	Shares in accounting units with substantial influence			0	0
r26	Other securities and shares			0	0
r27	Loans to controlled and managed organizations and to accounting unit with substantial influence			0	0
r28	Other financial investments			0	0
r29	Financial investments acquired			0	0
r30	Advance payments for long-term financial assets			0	0
r31	Current assets	1 028 749 000	507 495 000	762 154 000	1 039 131 000
r32	Inventory	242 274 000	187 161 000	204 414 000	225 396 000
r33	Materials	115 996 000	110 227 000	110 889 000	135 222 000
r34	Work in progress and semi-products	18 743 000	26 905 000	18 692 000	15 855 000
r35	Finished products	107 240 000	50 029 000	68 487 000	65 897 000
r36	Animals			0	0
r37	Merchandise	295 000		0	0
r38	Advance payments for inventory			6 346 000	8 422 000
r39	Long-term receivables			3 600 000	2 800 000
r40	Trade receivables			3 600 000	2 800 000
r41	Receivables from controlled and managed organizations			0	0
r42	Receivables from accounting units with substantial influence			0	0
r43	Receivables from partners, cooperative members and association members			0	0
r44	Long-term deposits given			0	0
r45	Estimated receivable			0	0
r46	Other receivables			0	0
r47	Deferred tax receivable			0	0
r48	Short-term receivables	649 232 000	289 252 000	457 745 000	593 004 000
r49	Trade receivables	550 762 000	225 553 000	369 461 000	483 802 000
r50	Receivables from controlled and managed organizations			0	0
r51	Receivables from accounting units with substantial influence			0	0
r52	Receivables from partners, cooperative members and association members			0	0
r53	Receivables from social security and health insurance			0	0
r54	Due from state - tax receivable	88 343 000	61 766 000	85 734 000	105 358 000
r55	Short-term deposits given	747 000	175 000	143 000	438 000
r56	Estimated receivable	8 363 000		0	11 000
r57	Other receivables	1 017 000	1 758 000	2 407 000	3 395 000
r58	Short-term financial assets	137 243 000	31 082 000	96 395 000	217 931 000
r59	Cash	210 000	218 000	261 000	201 000
r60	Bank accounts	137 033 000	30 864 000	96 134 000	217 730 000
r61	Short-term securities and ownership interests			0	0
r62	Short-term financial assets acquired			0	0
r63	Accruals	37 048 000	28 990 000	15 401 000	5 927 000
r64	Deferred expenses	6 578 000	8 672 000	5 235 000	5 927 000
r65	Complex deferred costs	30 470 000	20 318 000	10 166 000	0
r66	Deferred income			0	0
r67	TOTAL LIABILITIES	3 286 917 000	2 665 185 000	2 811 875 000	2 942 140 000
r68	Equity	1 614 915 000	1 359 951 000	1 391 654 000	1 435 459 000
r69	Registered capital	865 100 000	865 100 000	865 100 000	865 100 000
r70	Registered capital	865 100 000	865 100 000	865 100 000	865 100 000
r71	Company’s own shares and ownership interests (-)			0	0
r72	Changes of registered capital ( +/- )			0	0
r73	Capital funds			0	0
r74	Share premium			0	0
r75	Other capital funds			0	0
r76	Differences from revaluation of assets and liabilities ( +/- )			0	0
r77	Differences from revaluation in transformation ( +/- )			0	0
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	41 808 000	45 078 000	45 077 000	46 703 000
r79	Legal reserve fund / indivisible fund	41 693 000	44 980 000	44 980 000	46 565 000
r80	Statutory and other funds	115 000	98 000	97 000	138 000
r81	Profit / loss - previous years	642 277 000	654 050 000	449 773 000	479 892 000
r82	Retained earnings from previous years	642 277 000	654 050 000	449 773 000	479 892 000
r83	Accumulated losses from previous years			0	0
r84	Profit / loss - current year (+/-)	65 730 000	-204 277 000	31 704 000	43 764 000
r85	Other sources	1 626 658 000	1 238 479 000	1 352 356 000	1 471 766 000
r86	Reserves	41 435 000	15 489 000	33 841 000	35 988 000
r87	Reserves under special statutory regulations	26 000	27 000	27 000	27 000
r88	Reserves for pension and similar payables			0	0
r89	Income tax reserves			0	0
r90	Other reserves	41 409 000	15 462 000	33 814 000	35 961 000
r91	Long-term payables	148 869 000	106 585 000	114 449 000	124 299 000
r92	Trade payables			0	0
r93	Payables to controlled and managed organizations			0	0
r94	Payables to accounting units with substantial influence			0	0
r95	Payables from partners, cooperative members and association members			0	0
r96	Long-term advances received			0	0
r97	Issues bonds			0	0
r98	Long-term notes payables			0	0
r99	Estimated payables			0	0
r100	Other payables			0	0
r101	Deferred tax liability	148 869 000	106 585 000	114 449 000	124 299 000
r102	Short-term payables	637 754 000	308 505 000	373 138 000	458 843 000
r103	Trade payables	579 361 000	260 458 000	336 712 000	423 271 000
r104	Payables to controlled and managed organizations			0	0
r105	Payables to accounting units with substantial influence			0	0
r106	Payables from partners, cooperative members and association members			0	0
r107	Payroll	11 467 000	9 182 000	8 476 000	8 410 000
r108	Payables to social securities and health insurance	5 612 000	4 864 000	4 760 000	5 042 000
r109	Due from state - tax liabilities and subsidies	3 323 000	1 955 000	2 040 000	2 133 000
r110	Short-term deposits received	947 000	1 617 000	993 000	1 603 000
r111	Issues bonds			0	0
r112	Estimated payables	37 044 000	8 791 000	9 373 000	13 248 000
r113	Other payables		21 638 000	10 784 000	5 136 000
r114	Bank loans and financial accommodations	798 600 000	807 900 000	830 928 000	852 636 000
r115	Long-term bank loans	798 600 000	807 900 000	793 950 000	815 285 000
r116	Short-term bank loans			36 978 000	37 351 000
r117	Short-term accommodations			0	0
r118	Accruals	45 344 000	66 755 000	67 865 000	34 915 000
r119	Accrued expenses		24 839 000	29 491 000	151 000
r120	Deferred revenues	45 344 000	41 916 000	38 374 000	34 764 000
	profit/loss account	31.12.2007 (CZK)	31.12.2008 (CZK)	31.12.2009 (CZK)	31.12.2010 (CZK)
a1	Turnover	5 343 806 000	4 273 005 000	2 753 506 000	4 563 044 000
a2	Revenues from sold goods	75 626 000	45 943 000	30 861 000	3 485 000
a3	Expenses on sold goods	66 184 000	48 915 000	26 290 000	3 398 000
a4	Sale margin	9 442 000	-2 972 000	4 571 000	87 000
a5	Production	5 245 896 000	4 179 106 000	2 740 033 000	4 555 558 000
a6	Revenues from own products and services	5 268 180 000	4 227 062 000	2 722 645 000	4 559 559 000
a7	Change in inventory of own products	-25 558 000	-49 224 000	10 842 000	-5 373 000
a8	Capitalization	3 274 000	1 268 000	6 546 000	1 372 000
a9	Production consumption	4 570 460 000	3 952 382 000	2 248 900 000	3 925 966 000
a10	Consumption of material and energy	4 228 212 000	3 629 012 000	1 958 895 000	3 549 819 000
a11	Services	342 248 000	323 370 000	290 005 000	376 147 000
a12	Added value	684 878 000	223 752 000	495 704 000	629 679 000
a13	Personnel expenses	253 871 000	218 323 000	194 355 000	196 241 000
a14	Wages and salaries	186 405 000	161 704 000	143 113 000	142 509 000
a15	Renumeration of board members	244 000	218 000	233 000	222 000
a16	Social security expenses and health insurance	62 530 000	52 362 000	47 751 000	50 554 000
a17	Other social expenses	4 692 000	4 039 000	3 258 000	2 956 000
a18	Taxes and fees	2 205 000	8 634 000	7 533 000	10 444 000
a19	Depreciations of intangible and tangible assets	199 690 000	157 176 000	153 140 000	160 234 000
a20	Revenues from disposals of fixed assets and materials	17 062 000	12 567 000	7 517 000	4 817 000
a21	Revenues from disposals of fixed assets	16 343 000	1 309 000	4 985 000	713 000
a22	Revenues from disposals of materials	719 000	11 258 000	2 532 000	4 104 000
a23	Net book value of disposed fixed assets and materials	4 172 000	20 028 000	2 433 000	4 230 000
a24	Net book value of sold fixed assets	3 534 000	129 000	4 000	467 000
a25	Net book value of sold material	638 000	19 899 000	2 429 000	3 763 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	-152 100 000	-21 852 000	35 862 000	86 108 000
a27	Other operating revenues	17 420 000	24 378 000	19 665 000	19 773 000
a28	Other operating expenses	273 226 000	58 091 000	60 249 000	25 757 000
a29	Transfer of operating revenues			0	0
a30	Transfer of operating expenses			0	0
a31	Operating profit / loss	138 296 000	-179 703 000	69 314 000	171 255 000
a32	Revenues from sales of securities and ownership interests			0	0
a33	Sold securities and ownership interests			0	0
a34	Revenues from long-term financial assets			0	0
a35	Revenues from shares in controlled and managed organizations and in accounting units with substantial influence			0	0
a36	Revenues from others securities and ownership interests			0	0
a37	Revenues from other long-term financial assets			0	0
a38	Revenues from short-term financial assets			0	0
a39	Expenses associated with financial assets			0	0
a40	Revenues from revaluation of securities and derivatives			0	0
a41	Cost of revaluation of securities and derivatives		21 075 000	9 103 000	0
a42	Change in financial reserves and adjustments ( + / - )			0	0
a43	Interest revenues	901 000	1 597 000	113 000	26 000
a44	Interest expenses	42 590 000	54 841 000	42 765 000	44 761 000
a45	Other financial revenues	117 154 000	153 989 000	91 287 000	193 075 000
a46	Other financial expenses	101 625 000	146 528 000	67 459 000	265 981 000
a47	Transfer of financial revenues			0	0
a48	Transfer of financial expenses			0	0
a49	Profit / loss from financial operations ( transactions )	-26 160 000	-66 858 000	-27 927 000	-117 641 000
a50	Income tax on ordinary income	46 406 000	-42 284 000	7 864 000	9 850 000
a51	Due tax	46 406 000	-42 284 000	0	0
a52	Tax deferred			7 864 000	9 850 000
a53	Operating profit / loss ordinary activity	65 730 000	-204 277 000	33 523 000	43 764 000
a54	Extraordinary revenues			8 605 000	0
a55	Extraordinary expenses			10 424 000	0
a56	Income tax on extraordinary income			0	0
a57	Due tax			0	0
a58	Tax deferred			0	0
a59	Operating profit / loss extraordinary activity			-1 819 000	0
a60	Transfer profit ( loss ) to partners (+/-)			0	0
a61	Profit / loss of current accounting period (+/-)	65 730 000	-204 277 000	31 704 000	43 764 000
a62	Profit / loss before tax (+/-)	112 136 000	-246 561 000	39 568 000	53 614 000
	Receivables after due date total	28 259 000	33 017 000	97 104 000	25 503 000
	Receivables more than 180 days after due date	15 334 000	14 681 000	4 610 000	5 079 000
	Liabilities after due date total	0	0	0	0

Balance indices		31.12.2007	31.12.2008	31.12.2009	31.12.2010
Return on total assets ROA (in %)	a62/r1 * 100	3,41	-9,25	1,41	1,82
Return on equity ROE (in %)	a62/r68 * 100	6,94	-18,13	2,84	3,73
Return on sales ROS (in %)	a62/a1 * 100	2,10	-5,77	1,44	1,18
Turnover of receivables (in days)	r49/a1 * 365	37,62	19,27	48,98	38,70
Turnover of liabilities (in days)	r103/a1 * 365	39,57	22,25	44,63	33,86
Turnover of inventories (days)	r32/a1 * 365	16,55	15,99	27,10	18,03
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	390 995,00	198 990,00	352 038,00	542 937,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	n/a	n/a	94,62	102,17
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	41,56	49,82	73,88	41,57
Current ratio	r31 / (r102+r116+r117)	n/a	n/a	1,86	2,09
Quick ratio	(r58+r48) / (r102+r116+r117)	1,23	1,04	1,35	1,63
Cash ratio	r58 / (r102+r116+r117)	n/a	n/a	0,23	0,44
Debt ratio I (in %)	(1-r68/r67) * 100	50,87	48,97	50,51	51,21
Debt ratio II (in %)	r85/r67 * 100	49,49	46,47	48,09	50,02

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.27
UK Pound	1	Rs.73.34
Euro	1	Rs.64.58

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.